ConsumerismAwareness of one's role as a consumer in markets. This centers around the information and capabilities required to make reasonable purchasing decisions.
Marketing & Sales Tactics
Service Terms & Conditions
CreditKnowledge of credit products and their total costs. Centers around the distinction between the productive and cost effective use of credit and problematic credit that is expensive, unproductive or unaffordable. For example, an affordable mortgage that allows a family to pay for a home as they use it as compared to impulse purchases funded with high interest credit.
Credit Reporting / Credit Scores
Fixed / Variable Interest Rates
Fixed Payment Term Loans
Line of Credit
Secured Loans/ Unsecured Loans
Terms & Conditions
Budgets & ExpensesThe capacity to budget for monthly, annual and irregular expenses.
Home EconomicsHome economics looks at the needs of a household or individual and how these needs can be met within a budget. This often looks at doing things in the most economical way that is conductive to quality of life. For example, comparing the cost and nutrition of home cooked meals with convenience foods.
Maintenance & Repair
Financial PlanningModeling future financial needs including life changes such as retirement and planning to meet these needs. This typically includes the concept of efficient market theory that predicts it is difficult for an individual to outperform market averages on a risk-adjusted basis.
Efficient Market Theory
Government-insured Accounts / Investments
Historical Performance of Investments
Financial SystemA basic working understanding of the global financial system including the following foundational concepts.
Small BusinessAs many individuals will run a business or work for a small business, foundational business economics is an element of financial literacy. This may include awareness of the competitiveness of industries and the high rate of new small businesses that fail.
Return on Investment
|Overview: Financial Literacy|
The foundational knowledge and know-how required to make informed financial decisions and plans.